NEPRA lowers WAPDA hydropower tariff by 27.5pc

The National Electric Power Regulatory Authority (NEPRA) has reduced Water and Power Development Authority’s (WAPDA) average bulk hydroelectric tariff by 27 per cent for consumers to ensure its revenue stream at Rs124 billion for the current fiscal year.

According to a local media report, the bulk hydropower tariff at which WAPDA sells its power generation from all hydropower stations to the Central Power Purchasing Agency has been determined at Rs4.11 per unit for FY2020-21 against Rs5.67 fixed in FY2017-18.

The determination will not have a direct impact on consumer-end tariff because it will form part of the larger basket of all fuels. Hydropower contribution normally varies between 9pc and 40pc of the total power supply depending on water availability. The government has already given the international lenders an undertaking to increase the power tariff by about 35pc by June 2022.

NEPRA in its determination said the previous average bulk tariff for WAPDA approved in FY2018 stood at Rs5.67 per kWh, including Rs3.55 per kWh net hydel profit (NHP) or hydel levies, which had now been determined at Rs4.11 per unit (down by Rs1.56) for FY2021 that also included 96 paisa per kWh NHP or hydel levies.

Moreover, the base tariff for WAPDA plants has been increased from Rs2.12 per unit to Rs3.15, an increase of Rs 1.03. However, hydel profit and levies have been reduced from Rs3.55 to 96 paisa per unit.



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